Hospira, Stada sign generic product agreement

The agreement could be lucrative for Hospira as an increasing number of patents for biopharmaceuticals are expiring, opening up huge market opportunities for biosimilars manufacturers. Erythropoietin has sales in Europe of approximately $1.4 billion, according to Hospira.

“Developing and providing access to biosimilars is a natural extension of Hospira's leadership position in generic injectable pharmaceuticals and an important part of our strategy of investing for growth,” said Christopher Begley, CEO of Hospira.

Through the agreements, Hospira obtains exclusive distribution rights for erythropoietin in the EU and several other European countries. Hospira will retain exclusive distribution rights in the US and Canada. An affiliate of Stada, Bioceuticals, will receive an approximate $21 million upfront payment and up to an additional $34 million in payments over the next several years.

Bioceuticals has already submitted a marketing application for a biosimilar erythropoietin in Europe. The company could potentially receive EU approval for a dialysis indication as soon as late 2007.

In Hospira's attempt to expand its generic portfolio, the company also recently acquired BresaGen, an Australian biotechnology company for $21 million. BresaGen provides expertise in protein and peptide manufacturing and cell line development, all of which support a biosimilars program.

“Our collaboration with Bioceuticals, coupled with BresaGen's strengths and our own capabilities and expertise in biologic products, will help us build a solid biosimilars platform and drive continued growth in our specialty injectable pharmaceutical business,” said Mr Begley.